Stocks edge down early despite favorable FDI news

Shanghai stocks edged down in early trading, with losses for most shares, even though China reported a surge in foreign direct investment in June. The Shanghai Composite Index lost 7.32 points, or 0.35 percent, to 2,058.40. Turnover stood at 47.7 billion yuan (US$7.8 billion) by the noon break. China attracted US$14.39 billion of FDI last month, a 20.12-percent increase from a year earlier, the Ministry of Commerce said today. The figure compared with a 0.29 percent gain in May. FDI totaled US$61.98 billion in the first six month of the year, up 4.9 percent year on year, the MOC said. Premier Li Keqiang yesterday reiterated that China will keep stabilizing economic growth and controlling inflation risks while pushing forward reforms, but added that the country would not shift its policy direction because of a temporary change in economic indicators. Poly Real Estate, China's second-largest homebuilder, lost 1.5 percent to 10.85 yuan. Gemdale Corporation fell 2.1 percent to 7.08 yuan. Shares of distilleries, automakers and oil producers were among the biggest losers.